DuPont Decomposition
Why does URAVIDEF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.0% = 2.7% × 0.49 × 1.54
Latest: FY2026
Profitability
Net Margin
2.7%
2.3% →2.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.64x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
2.18x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.2 pp over 5 years. Driven by asset turnover declining (0.64x → 0.49x), leverage falling (2.18x → 1.54x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 0.64 | 2.18 | 3.2% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 0.65 | 2.20 | 3.7% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 0.76 | 2.18 | 8.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.0% | 0.47 | 1.91 | 5.3% |
| FY2026 | ₹0Cr | ₹0Cr | 2.7% | 0.49 | 1.54 | 2.0% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.